Proposal to postpone a dividend decision
Växjö, 13 May 2020
The Board of Directors of Balco Group AB (publ) has decided to withdraw the previously announced dividend proposal for the 2019 financial year, due to the great uncertainty prevailing in the external environment due to the effects of the spread of the transmission of Covid-19, but at the same time remains open to an extra general meeting in the fall of 2020 for a new dividend decision when the consequences of the pandemic became clearer and the market conditions more stable.
The decision has been made despite Balco Group AB's financial position being strong, with a high solvency ratio, low net debt and good liquidity. The decision does not signal a change in the company's long-term dividend policy. The impact on Balco Group has so far been limited and no short-term permits have been made and no contributions have been sought from the Swedish Growth Agency, Tillväxtverket.
The background to the decision should be seen as a precautionary measure and to better understand the corona pandemic consequences in the long term, and to secure the conditions for our growth strategy through possible acquisitions.
The Annual General Meeting will take place on Wednesday, June 17, 2020 at. 15:00. The notice of the Annual General Meeting will be issued on May 14. The Annual General Meeting is intended to be conducted in accordance with the recommendations of the Public Health Authority.
For more information, please contact:
Kenneth Lundahl, President and CEO, +46 70 630 20 57, kenneth.lundahl@balco.se
Michael Grindborn, CFO and Head of IR, +46 70 670 18 48, michael.grindborn@balco.se
Balco is a growth company offering high quality, innovative, patented and energy-saving balcony solutions. The company’s customised products contribute to enhanced quality of life, security and an increase in value for residents of multi-family residential properties. Through a decentralized and efficient sales process, Balco has control over the entire value chain – from production to delivery. The company, which was founded in Växjö in 1987 and which has over 400 employees, is a market leader in the Nordic region, and operates on several markets in northern Europe. Sales in 2019 amounted to SEK 1,221 M. Balco’s shares are listed on the Nasdaq Stockholm Stock Exchange.